Bitcoin FAQ.comhttp://bitcoin-faq.com
Bitcoin Information and FAQSun, 22 Feb 2015 14:16:49 +0000en-UShourly1How do you buy a bitcoin?http://bitcoin-faq.com/how-to-buy-a-bitcoin/
Wed, 11 Sep 2013 17:55:01 +0000http://1crawler.com/bitcoinfaq/?p=48Remember, you do not have to purchase a full bitcoin. You can purchase a tenth of a bitcoin (0.1) or any other fraction. You can buy them online or in person. (We have more information about earning bitcoins or mining bitcoins).

To buy bitcoins:

CoinBase is an exchange based in the USA, but can be used from other places.

LocalBitcoins is a way to buy and sell bitcoins locally, in 192 countries around the world, including the United States.

A note regarding MtGox. MtGox is one of the oldest bitcoin exchanges, but has had issues in 2013 and 2014 which is the reason we do not recommend using them for purchasing bitcoins.

]]>How are new bitcoins created?http://bitcoin-faq.com/how-are-new-bitcoins-created/
Thu, 05 Sep 2013 16:32:12 +0000http://1crawler.com/bitcoinfaq/?p=15Bitcoins are created using a process called “mining” which involves a computer on the bitcoin network solving a complex mathematical problem which creates a new “block.” The mathematical problem is something that is difficult to solve and demonstrates that work was done, which is called “proof of work.”

The reward for solving a block is automatically adjusted so that in the approximately first 4 years of the bitcoin network, 10,500,000 BTC was created, 50 BTC per block. The reward amount is halved roughly every 4 years, so during roughly years four through eight, 5,250,000 bitcoins will be created, 25 BTC per block. Approximately every 4 years the “block reward” is halved. Next down to 12.5 BTC/block, roughly in the fall of 2016, then 6.25 BTC/block about four years later, and so on until around 2140 when no more are created and the supply will be just under 21,000,000.

Bitcoins are the unit of currency of the Bitcoin system. Bitcoin is like email for money. Imagine you can send money over the internet directly to an email address to anyone, anywhere in the world nearly instantly. Bitcoin allows that. Bitcoin is a new way for people to consensually trade value without trusted third parties.

Bitcoin is similar to a Dollar, Euro, Yen, or Pound except they require a third party. A commonly used shorthand for this is “BTC” to refer to a price or amount (eg: “100 BTC”). There are such things as physical bitcoins, but ultimately, a bitcoin is just a number associated with a Bitcoin Address. A physical bitcoin is simply an object, such as a coin, with the number carefully embedded inside.

Bitcoin is a peer-to-peer system. This means that it does not rely on a central authority such as a central bank, a large corporation, or a large government. The bitcoin network is distributed among the people who run the bitcoin software. The benefit is that no longer can a government seize your money from your bank account as happened in Cyprus in 2013. Your money really is your money. Another benefit is that there is no inflation of your money so the government can not take your money through the hidden tax of inflation.

The bitcoin software is free, and open source which means anyone can look at it and verify that it does what it says. It can be verified that there are no backdoors for government spy agencies or anyone else. Likewise, Bitcoins can be transferred anywhere in the world within minutes for free or extremely low cost compared to wire transfers, credit cards and other systems.

in short, bitcoin is to email what Euros, Yen, or Dollars are to regular mail, a big advance because they can be sent anywhere extremely quickly, require no third party, and avoid the problem of governments taking your money.

]]>What can I do with Bitcoin?http://bitcoin-faq.com/what-can-i-do-with-bitcoin/
Sat, 11 May 2013 16:59:39 +0000http://1crawler.com/bitcoinfaq/?p=38The Bitcoin Directory has a list of many bitcoin related businesses.

If you run a business you can accept business easily using something like BitPay or Coinbase.

]]>How long until all bitcoins are generated?http://bitcoin-faq.com/how-long-until-all-bitcoins-are-generated/
Fri, 10 May 2013 16:41:44 +0000http://1crawler.com/bitcoinfaq/?p=25The last block generated that will generate coins will be block block #6,929,999. This block will be generated around 2139-2140, so more than 100 years in the future. It is not a problem that will impact the network in the near future. The total number of coins that will have been generated at the point will be 20,999,999.9769.

If the divisibility of bitcoins is increased, the number of coins will remain below 21,000,000. The math that explains that is not important, but if you are interested, it is not too complicated.

]]>Are bitcoins divisible?http://bitcoin-faq.com/are-bitcoins-divisible/
Tue, 07 May 2013 16:41:06 +0000http://1crawler.com/bitcoinfaq/?p=23Yes, bitcoins are divisible. Currently bitcoins can be divided down to 8 decimal places, which means 0.00000001 BTC is currently the smallest amount possible. Smaller divisions are possible by changing the data structures which store bitcoins. So in practice bitcoins are practically infinitely divisible.
]]>How many bitcoins are currently in existence?http://bitcoin-faq.com/how-many-bitcoins-are-currently-in-existence/
Mon, 06 May 2013 16:35:57 +0000http://1crawler.com/bitcoinfaq/?p=19The total number of bitcoins in existence increases on average every ten minutes due to mining. In September 2013, the are currently more than 11.6 million bitcoins in existence.

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from existing capital or new capital paid by new investors, rather than from profit earned by the individual or organization running the operation. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

There is no person or organization running the operation.

Bitcoin does not “pay returns”.

There is no “fraudulent investment operation” involved in bitcoin, everything is public.

Bitcoin is like a stock, bond, commodity or other asset that is useful and increases in value. Was Apple, Google, or Microsoft a Ponzi scheme because those who were involved early made money?

The U.S. Department of Justice says Bitcions can be “legal means of exchange” in front of the U.S. Senate, November 2013.